How to get a decent pension as a mum

How to get a decent pension as a mum

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According to a study, those who give up work to look after family are at most risk of not saving for retirement. Kalpana Fitzpatrick, founder of the website,, has stated that “stay-at-home mums are at the highest risk”. Here, Acumen Financial offers advice on saving for retirement with low income.

Tips on saving for retirement as a stay at home mum

Saving for retirement as a stay at home mum is extremely difficult, however, with the average state pension currently at an approximate £8,000 per annum, saving is essential. This figure represents those who have 35 National Insurance (NI) credits. For those who wish to live on more than an annual figure of £8,000 there are a few steps that you can take when saving, in order to maximise savings.

It is important to consider that even away from the workplace, your years as a parent will still allow you to qualify towards a state pension and as long your eldest child is under 12, you will get National Insurance credits, which can help to increase your retirement amount. However, while this is one way of saving for retirement with a low income, in order to qualify for the full state pension, you need to have a total of 35 years NI credits by the retirement age.

At Acumen, we also recommend that those in a workplace pension scheme should try and stay in it. If your workplace offers a group personal pension, it may be possible for you to carry on contributing and therefore increase your pension amount. If this isn’t possible, your employer is required to contribute to a pension fund for the duration of maternity leave.

Keys to saving for retirement

Even on a low income, it is possible to save for retirement. Here, we offer a few key ideas on saving for retirement.

  • Lifetime ISA
    If you are no longer part of a company pension scheme, it is advisable to open either a lifetime ISO or a private personal pension. By taking the above action, an ISA or personal pension offers a good return rate and is a great way of saving for retirement.
  • Saving from a young age
    While saving for retirement isn’t a top priority for many young people, it can be advantageous in later years. Some have stated a compulsory saving scheme should be put in place as soon as you begin work. This way, you will be able to save for retirement, without it making much different to current income and providing security for later years.
  • Lost Pensions
    During your working life, you may have more than one employer. On average, individuals have 11 employers and as a result are part of different pension schemes. Over the years, this means that over £400 million worth of pension money has been “lost”, when employees forget about their money

For more advice on saving for retirement on a low income, you can speak to the expert financial advisors here at Acumen Financial. Ring 0151 520 4353 or email for more information.

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